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Home / Simons-Taxes /Business tax /Part B2 How are trade profits and losses calculated? /Division B2.1 Establishing trade profits and losses /Establishing trade profits and losses / B2.109 Control and connected persons
Commentary

B2.109 Control and connected persons

Business tax

The concept of control and connected persons is used in many places in the legislation. Often a specific definition is given for a particular situation, but in the absence of that the following definitions will apply.

Control

General definition

For various income tax and corporation tax provisions, control means:

  1. Ìý

    •ÌýÌýÌýÌý in relation to a body corporate: the power of a person to secure that the affairs of body corporate are conducted in accordance with the wishes of that person:

    1. Ìý

      –ÌýÌýÌýÌý by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or

    2. Ìý

      –ÌýÌýÌýÌý by virtue of any powers conferred by the articles of association or other documents regulating that or any other body corporate,

  2. Ìý

    •ÌýÌýÌýÌý in relation to a partnership: the right to a share of more than one half of the assets, or of more than one half of the income, of the partnership1

Capital gains and close companies

'Control',

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